Bitcoin News Update: S&P’s $2 Trillion Crash Rattles the Crypto Market’s Foundation
- S&P 500's $2 trillion late-2025 drop triggered crypto volatility, with Bitcoin/Ethereum swings causing $1B+ daily liquidations. - High-leverage trading (20x-100x) and institutional outflows exacerbated crypto's fragility, exemplified by a $168M trader loss. - Tech stock declines (2%+ on Nov 17) and thinning liquidity amplified crypto's instability, erasing $1.2T in sector value since October. - Major crypto firms like BitMine Immersion (3.6M ETH) face scrutiny as MSCI considers excluding Bitcoin-focused
The S&P 500’s dramatic $2 trillion turnaround in late 2025 has sparked renewed turbulence in the crypto sector, as leveraged positions and institutional withdrawals clash with already thin liquidity. The leading index
This recent upheaval started with
The S&P 500’s slide has only heightened these vulnerabilities.
Institutional withdrawals have added further pressure.
This heightened volatility has also put the spotlight on companies with substantial crypto reserves.
Amid the turmoil, some investors see potential.
As these forces play out, the months ahead will reveal whether crypto can regain stability or if more upheaval is in store. For now, the S&P 500’s reversal has laid bare the vulnerabilities of a market still adapting to macroeconomic shifts and speculative excess.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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